B18 The benefits of involving procurement in insurance purchase
AIRMIC technical director Paul Hopkin and James Purvis of James Purvis Insurance Consulting presented a workshop on the role that procurement professionals can play in the purchasing of insurance.
There was lively discussion at this workshop about the effect that procurement managers can have on the insurance purchase process. It was generally acknowledged that procurement professionals bring a rigour to the process and can provide strategic purchasing input that enables a more robust selection process to be undertaken.
However, it was generally felt that procurement professionals do not have sufficient understanding of the long-term relationships involved in insurance purchases. Indeed, a contribution from an insurance broker representative at the workshop indicated that experience shows that the involvement of procurement in insurance purchasing makes it more likely that there will be a change of insurance carrier or broker.
During discussion it was agreed that involving procurement in the selection process is likely to be more fair and objective. Paul Hopkin thanked participants in the workshop and confirmed that AIRMIC and the Chartered Institute of Purchasing and Supply (CIPS) are producing a joint guide into the procurement of insurance and insurance support services. He said that the discussions at the workshop would be valuable in finalising the guide, which he expects will be published in the autumn.